Cosmetics Maker Revlon Files For Bankruptcy

Cosmetics brand Revlon Inc REV has filed for bankruptcy under Chapter 11 after facing heavy debt.
It has filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.
Related: Beauty Products Giant Revlon In Talks To File For Chapter 11 Bankruptcy: Report
The filing will allow the cosmetics maker to reorganize its legacy capital structure and improve its long-term outlook in the face of a liquidity crunch.
The company expects to receive $575 million in debtor-in-possession (DIP) financing from its existing lender base, which will help fund its day-to-day operations.
The cosmetics maker has been in the industry for ninety years and has recently struggled to compete with brands driven by social media influencers.
Revlon has listed assets and liabilities between $1 billion and $10 billion and had long-term debt of $3.31 billion as of March 31.
None of Revlon's international operating subsidiaries, except Canada and the U.K., were included in Chapter 11 proceedings.
Price Action: REV shares closed higher by 20.32% at $2.25 on Wednesday.
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